Conn Co. reported a retained earnings balance of $400,000 at December 31, Year 2. In August Year 3, Conn determined that insurance premiums of $60,000 for the 3-year period beginning January 1, Year 2, had been paid and fully expensed in Year 2. Conn has a 30% income tax rate. What amount should Conn report as adjusted beginning retained earnings in its Year 3 statement of retained earnings?